Due to the existence of random disturbance of the price of margin trading, it will inevitably lead to misjudgment of the market judgment subsystem, which will lead to trading risks. The transaction risk is concrete, which may cause or actually cause the loss of transaction capital. The size of the risk is measured by the proportion of the loss to the transaction capital.
In other words, if the judgment is wrong, the possibility of loss will increase by a level on the basis of the original market risk. Therefore, investors must be cautious when analyzing the market conditions of margin trading.
In foreign exchange, risks can be superimposed. Of course, as long as the analysis is reasonable and the trading skills are used properly, our profits will increase exponentially. The key is to be familiar with the characteristics and operation mode of the whole trading system.